Here’s Why the Bitcoin Price Is Falling Despite Positive Catalysts

The bitcoin price is now hovering below the psychologically sensitive $85,000 level, falling just over 3% in the past 24 hour period, according to CoinMarketCap data. With the latest declines, the BTC price is basically flat over the past week, erasing previous gains. The bitcoin market has been grappling with tariff fallout and signs of inflation reemerging in the economy, despite its design as a hedge from these headwinds.

While you wouldn’t know it from looking at the bitcoin price, there are actually some positive catalysts unfolding behind the scenes that would suggest there is bullish sentiment building. Once the bitcoin price is able to pivot from the economic headlines to indications of greater mainstream adoption, it could start reflecting that optimism by heading back toward its peak reached earlier this year. 

Mainstream Adoption

While you might not know it by looking at the bitcoin price this week, there are signs of greater mainstream adoption of digital assets emerging. Most recently, spot-bitcoin ETFs have just experienced their 10th consecutive day of positive net inflows of capital, culminating in a tally of $89 million on March 27, data by SoSoValue reveal.

BlackRock’s iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund have been attracting the greatest inflows, including close to $4 million for IBIT and $97.1 billion for FBTC. Some of those inflows were offset by outflows from funds like Invesco’s BTCO, which suffered $6.9 million in funds going out, and WisdomTree’s BCTW, which lost $5 million to investor outflows.

According to Presto Research Analyst Min Jung cited by The Block, the net inflow trend is an indication of greater institutional demand for the leading cryptocurrency. The cumulative total net inflows, which according to SoSoValue reflect “the cumulative sum of 1D Net Inflow of all U.S. Bitcoin spot ETFs since their listing,” currently hovers at $36.34 billion. 

One of the buyers of BlackRock’s bitcoin fund is wealth management firm Dominari Holdings, which revealed plans to direct surplus cash into the iShares Bitcoin Trust ETF. Dominari’s bitcoin treasury currently hovers at $2 million and the firm has plans to boslter it by year-end. Dominari Holdings has Donald Trump Jr. and Eric Trump, sons of the president, on its board of directors, as the current administration touts its friendly approach to crypto regulation. 

Now What?

There’s no shortage of bullish forecasts for the bitcoin price, and positive catalysts continue to grow. BlackRock CEO Larry Fink reportedly forecast that the bitcoin price could soar as high as $700,000 if institutional adoption of the leading crypto would just gain enough scale. For now, investors remain in wait and see mode amid a BTC price that is being held back by the economic headlines.

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